Taxation Determination
TD 94/96
Fringe benefits tax: can the exemption for 'fly-in fly-out' transport in subsection 47(7) of the Fringe Benefits Tax Assessment Act 1986 apply, where the employees take a rest day during their time at the work site?
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FOI status:
may be releasedFOI number: I 1218058| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
Yes. Where the other conditions of subsection 47(7) are met, this Office will accept that the break in the working days does not affect the availability of the exemption for the transport of the employees to and from their usual place of residence.
Example
Builder Pty Ltd operates a construction site at a remote locality. Employees are transported from their homes in the capital city to work for three weeks at the site, after which they are returned to their home for one week's leave. The applicable Mines Regulations specify that employees must take one day off after working 13 consecutive days. The fact that employees have this day off will not jeopardise the exemption available under subsection 47(7).
Commissioner of Taxation
22/12/94
Previously issued as draft TD 94/D93
References
ATO references:
NO NOR J36/354/7; FBT Cell 30/86; NAT 94/9041-8
Subject References:
fly-in fly-out transport;
exempt fringe benefit;
fringe benefit;
Legislative References:
FBTAA 47(7)